Bitcoin exchange reserves rose across Binance, Kraken, and Bitstamp this week even as BTC's price threatened to fall below $62,000. The added supply increases selling potential just as whale traders cut long exposure and the Coinbase Premium Index stayed negative for over three months.
Bitcoin flowed into major exchanges even as its price threatened to fall below $62,000, with Binance, Kraken, and Bitstamp all seeing sizeable coin inflows.
Exchange reserves climb at Binance, Kraken, and Bitstamp
The Binance reserve rose from 662,000 to 671,600 BTC, a 1.45% increase in a week. Kraken saw a 3.48% weekly increase in exchange reserves, to 154,500 BTC, while Bitstamp reserves spiked 41.67%, or 3,500 BTC, on Friday, August 14, according to crypto analyst BorisD.
There was evidence of whale accumulation as part of a late bear market. At the same time, rising reserves show increased selling potential, and a weak recovery attempt would be smothered by this added supply.
Whales trim long exposure while retail stays long
The Bitcoin Whale vs. Retail Delta, which tracks the gap between leveraged positions held by large and small traders, fell from -0.17 on August 8 to -0.68 at the time of writing, the lowest reading in 61 days, according to Alphractal data. Negative values mean whale positions are reducing long exposure while retail remains long.
Smart money staying away from long exposure as Bitcoin faces rejection from the $65,000 supply zone was a warning sign, and there could be increased short-term volatility.
Coinbase Premium Index stays negative for over three months
The Coinbase Premium Index, which measures the price difference between Binance and Coinbase, has been negative for over three months. Higher interest from U.S.-based investors would push BTC prices to trade at a premium; negative values instead point to a lack of interest from U.S. investors.
A crypto analyst also used the Bitcoin Rainbow chart, not itself predictive of future trends, to show extremely undervalued conditions in the market. Bitcoin is relatively cheap and can remain cheap for a while yet, but a trend reversal is not yet at hand.
Source: AMBCrypto
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